Expanded Value-added Service Offering in the Agrochemicals Sector
Speciality chemicals distributor DKSH AG (Zurich, Switzerland) has announced the acquisition of 100% of Agrochemicals distributor and blender SACOA Pty Ltd (Claremont – Western Australia, Australia) for an undisclosed sum. DKSH says the intention is “to further diversify its value-added service offering”.
Founded in 1994, family-owned SACOA is a formulator of premium agricultural crop protection products with sales of ca. AUD 21 mn (ca. CHF 15 mn at an exchange rate of 1.40 AUD/CH or ca. EUR 13.6 mn) that “develops, formulates and sells spray oils and adjuvants to a long-term customer base of agricultural distributors, resellers and farmers. The product range is supported by industry and academic research and field trial programs as well as proprietary and trademarked brand names”, DKSH said in the announcement.
According to DKSH, SACOA’s product range is highly complementary to the existing product portfolio, “recently enhanced through the 2020 acquisition of Axieo, including its subsidiary SST, a leading supplier of adjuvants and spray additives, in Australia and New Zealand”. It is planned to fully integrate SACOA into DKSH’s Performance Materials BU and to merge the sales teams, in order to create revenue synergies.
Source: DKSH press release
HGE / DCG – 30.04.2021
Performance Materials BU of DKSH manages well, integrating Acquisitions and increasing EBIT by 2.2%
Market expansion services provider (and speciality chemicals and ingredients distributor) DKSH AG (Zurich, Switzerland) today reported its financial results for 2020. Mostly due to COVID-19 and the pandemic-related restrictions, lockdown and ouright travel bans that resulted in GDP contraction, sales for the group decreased by 7.2% (-2.1% at constant exchange rat es / “CER”) to CHF 10’742 mn (from CHF 11’579 mn). As acquistions contributed 2.1%, the existing business declined by 4.2% for the group. The currency effect was negative, at -5.1%.
Operating profit (EBIT) was also down 3.0 % (up 2.4% at CER) at CHF 257.5 mn (against CHF 265.4 mn in 2019). Profit after Tax decreased by 8.0% (-2.9% at CER) to CHF 164.8 mn (was CHF 176.1 mn). Free cash flow increased 34.1% from CHF 156.7 mn to CHF 210.2 mn. The Board of Directors of DKSK will propose an increase in dividend of 2.6% to a new level of CHF 1.95 per share.
The Performance Materials BU (i.e. the specialty chemicals and ingredients distribution business) reported an increase in net sales to CHF 1’108.0 mn, 9.5% above 2019 (+ 15.1% at CER) based on an expansion of business with existing clients and the consolidation of business acquired at the end of 2019. EBIT was CHF 91.7 mn, up 2.2% from the CHF 89.7 mn in 2019 (+7.0% at CER). The unit particularly benefited from the acquisition of Axieo, which led to a significant increase of geografic coverage in Australia and New Zealand, although at a slight dilution of margins, DKSH said in the announcement.
Source: DKSH press release
HGE / DCG – 09.02.2021
Private Equity owned Distribution Group expands Asia-Pacific Coverage
Specialty chemicals and food ingredients distributor Azelis S.A. (Munsbach, Luxembourg) has recently announced that it has signed an agreement to acquire 100% of the shares of CW Pacific, Elle Bee Exports, CW Pacific Specialties and EB1 Pty Ltd [“CW Pacific”] (Mosman (Sydney), NSW – Australia) for an undisclosed sum from founders Skip Webb and Camiel Huisman.
Founded in 1997 and currently employing 17 people, CW Pacific specializes in the distribution of food ingredients for the Bakery and Meat markets as well as specialty chemicals for the Horticulture market. The company primarily serves the Australian market, but also Papua New Guinea, New Zealand and other Pacific Islands. All employees will become part of Azelis, including founder and managing director Skip Webb. CW Pacific has offices in Sydney, Melbourne and Brisbane including a food test kitchen (in Brisbane), that provides innovative solutions to its customers, Azelis said in the announcement.
Source: Azelis press release
HGE – DCG / 29.12.2020
Ben Hopkins to lead Activities of the Performance Materials BU in Australia and New Zealand
Speciality chemicals distributor DKSH AG (Zurich, Switzerland) has announced that the acquisition of specialty chemicals distributor Axieo (Kew (Melbourne) – Victoria, Australia) has been completed. The acquired business will be fully consolidated as of March 2020.
The company further said that Ben Hopkins, currently Vice President – Global Foods & Beverage Industry located in Singapore, will move to Australia to take over the leadership of the combined business of DKSH and Axieo in Australia and New Zealand.
Source: DKSH press release
HGE / DCG – 02.03.2020
Performance Materials BU significantly enhances Asia-Pacific Footprint for Speciality Chemicals
Speciality chemicals distributor DKSH AG (Zurich, Switzerland) has announced the acquisition of diversified specialty chemicals distributor Axieo (Kew (Melbourne) – Victoria, Australia) from management and financial sponsor Champ Private Equity.
Axieo sells products into a variety of industrial applications as well es the Cosmetics, Pharmaceutical, Food & Beverage and Agriculture. It operates two “Innovation Centers” in co-operation with Monash University in Melbourne, one focused on Life Sciences, the other on Industrial Applications. The company, which dates its roots back to 1950, has a turnover of ca. EUR 120 mn (ca. AUD 186 mn). It employs a staff of 120 and serves more than 2’600 customers according to the announcement.
No financial details were disclosed on the transcation, which is expected to close during Q1-2020, subject to certain conditions precedent. DKSH says the acquisition will be immediately earnings accretive. It adds more than 10% to the annual turnover of the Performance Materials BU.
Source: DKSH press release, Axieo website
HGE / DCG – 27.12.2019